## Audit Documentation: Definition and Objectives (SA 230)

### Definition

Audit documentation is the record of:

Audit procedures performed
Relevant audit evidence obtained
Conclusions the auditor reached

It is also commonly called working papers.

### Objectives under SA 230

The auditor prepares documentation to provide:

1. A sufficient and appropriate record of the basis for the auditor's report.

2. Evidence that the audit was planned and performed in accordance with:

Standards on Auditing (SAs)
Applicable legal and regulatory requirements

### Form of Documentation

Audit documentation may be recorded on paper OR on electronic or other media. There is no mandatory requirement for paper-based records. Both formats are equally valid.

### What Is an Audit File?

An audit file is one or more folders or other storage media (physical or electronic) containing all records that comprise the audit documentation for a specific engagement.

### Connecting Definition to Purpose

Element	Serves Which Objective
Procedures performed	Evidence that audit was conducted per SAs
Evidence obtained	Basis for the auditor's conclusion/report
Conclusions reached	Record of the reasoning behind the audit opinion

Worked example

### Example 1

CA B maintained all audit documentation in paper form because he believed it was mandatory. SA 230 explicitly permits documentation in paper OR electronic or other media — CA B's belief is incorrect. If maintaining paper records is inefficient, he may use electronic documentation without any legal concern.

### Example 2

An auditor who completes a bank reconciliation test, obtains a bank confirmation, and forms the conclusion that the cash balance is fairly stated must document: (a) the reconciliation procedure performed, (b) the confirmation letter received (evidence), and (c) the written conclusion that the balance is fairly stated. All three elements are needed for SA 230 compliance.

⚠️ Common exam mistakes

Equating audit documentation only with working papers — it includes the full record of procedures, evidence, AND conclusions.
Believing paper documentation is mandatory — electronic or other media is fully permissible under SA 230.
Confusing the definition (WHAT it is) with the objectives (WHY it exists) — exam questions often test these separately.

Bare-Act text Objective · SA 230 · click to expand

The objective of the auditor in accordance with SA 230 is to prepare documentation that provides: (i) a sufficient and appropriate record of the basis for the auditor's report and (ii) evidence that the audit was planned and performed in accordance with SAs and applicable legal and regulatory requirements.

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Audit Documentation – Definition, Objectives, and Form (SA 230)

Worked example

⚠️ Common exam mistakes